Good morning, and thank you for joining Stockland's 1H 2026 financial results update. Before we begin, I'd like to acknowledge the Traditional Owners and Custodians of the land on which we meet, the Gadigal people of the Eora Nation, and pay my respects to Elders past, present, and emerging.

Joining me today is Josh McHutchison, our CFO; Kylie O'Connor, CEO of Investment Management; and Andrew Whitson, CEO of Development. In the first half of FY 2026, we delivered a strong financial result while continuing to invest for future growth.

The execution of our strategy over the last four years has translated into strong operational and financial performance. We have significantly lifted production volumes across our platform, activating more of our pipeline to deliver attractive, sustainable returns.

We have positioned our MPC and LLC platforms to deliver for our customers and our securityholders in an environment of a continuing structural imbalance between supply and demand. Now turning to the result.

Funds from operations for the period was $325 million, up almost 30%, with FFO per security of 13.5 cents. The result reflects a significant lift in MPC settlement volumes, higher fee income from development partnerships, and a strong underlying performance from our investment management portfolio.

Importantly, we have delivered this growth while maintaining balance sheet strength and risk discipline. Net tangible assets increased to $4.25 per security, and, as anticipated, gearing ended the half at 28.1%.

Over the last four years, we have focused on reshaping our portfolio, embedding additional growth pathways, and positioning the business for sustainable performance. FY 2026 represents a step change in delivery of our strategy, and we are seeing that clearly reflected across the business this half.

In our residential platforms, MPC and land lease sales were up 87%, reflecting higher project activation and improving conversion as we focus on increasing delivery into a supply-constrained market. We have seen increased demand from first home buyers for our affordably priced product.

We launched four communities during the half across Queensland and Western Australia, with two additional launches targeted for the second half. We have created additional drivers for longer-term growth in sectors such as data centres, apartments, and logistics, maximising the value of our land holdings and leveraging our end-to-end capabilities.

We secured approximately 350 megawatts of power at two of our existing Victorian logistics assets, supporting future data centre development. This brings our total secured power bank to approximately 450 megawatts.

We are progressing final documentation for a data centre partnership with EdgeConneX, exploring both near- and medium-term opportunities across our portfolio. Across our commercial development pipeline, we completed approximately $420 million of built-to-hold projects and commenced a further $620 million of developments across logistics, town centres, and communities real estate.

We are pleased to have recently expanded our relationship with an existing investor by forming a new 50-50 partnership in the land lease sector. The new partnership will be seeded with two existing development projects with an initial gross asset value of approximately $200 million.

Across our business, we are focused on maximising our options for future growth while always maintaining our focus on risk, capital efficiency, and sustainability. To that end, we have now met our target of net zero Scope 1 and 2 emissions.

Importantly, this has been achieved through initiatives such as our rooftop renewable energy partnership, decarbonising our footprint, and generating commercial returns for Stockland. I will now hand over to Josh to provide an overview of the financial results.

Thanks, Tarun, and good morning, everyone. As Tarun mentioned, the consistent execution of our strategy has delivered strong operational and financial outcomes over the half.

The 1H 2026 result is characterised by significant earnings growth, a strong balance sheet, and capital settings that support future growth. Turning to the financial result in detail.

Funds from operations of $325 million was up 29.5% on the prior corresponding period, with FFO per security of 13.5 cents. The Investment Management segment delivered consistent FFO, with strong comparable FFO growth, high IM fee income, and built-to-hold completions offset by the strategic recycling of assets into capital partnerships in the previous period.

We have almost tripled Development FFO, primarily driven by significantly higher MPC settlement volumes from our expanded platform and growing development fees consistent with increased development activity in partnerships. Growth in unallocated corporate overheads was consistent with the growth in our platform and investment in capability, increasing 8%.

Over the last three years, our overheads across the business have grown by 4.6% per annum versus revenue growth of 9.3% per annum, and we remain focused on continuing to generate positive operational leverage. We expect total overheads across the business in the second half to be broadly in line with the first half result.

Net interest expense was down, reflecting higher interest capitalisation into projects in line with increased activation of the pipeline. Average net funds employed across commercial, MPC, and LLC development was around $700 million higher in 1H 2026 compared with 1H 2025, and a greater proportion of it was in active production.

FFO per security was up almost 30% on a pre- and post-tax basis to 13.5 cents, and AFFO per security at 10.8 cents was comfortably above our distribution per security of 9 cents. Moving on to capital management.

We have maintained a strong balance sheet position. As expected, our gearing finished the period at 28.1%.

We expect gearing to moderate back towards the midpoint of the target range by 30 June 2026. This reflects a weighting to the second half of both MPC and LLC settlement volumes and group operating cash flow.

Our weighted average cost of debt for the period was 5.2% compared with 5.3% for FY 2025, and we expect this to trend up slightly over the second half to average 5.3% for FY 2026. Our fixed hedge ratio averaged 74% for the period, and we took advantage of a favourable point in the credit cycle during the half to extend our weighted average debt maturity to 4.8 years through the issuance of $400 million of 10-year medium-term notes.

We finished the period with $2.1 billion of liquidity, comfortably covering approximately $1.25 billion of drawn debt maturing in calendar year 2026 as well as providing future funding flexibility. Consistent with our previous guidance, we expect the FY 2026 distribution per security to be in line with FY 2025.

The distribution reinvestment plan was in operation for the period, and we continue to actively manage our capital settings to support growth. Now on to cash flows.

Operating cash flow for the period was negative $315 million. This reflects an increase in development expenditure across our MPC, LLC, and built-to-sell commercial development pipelines in line with increased pipeline activation and in advance of completions and settlements.

Consistent with FY 2025, we expect second half operating cash flow to be materially stronger than first half, driven by the weighting of settlements to the second half. Overall, we have delivered a strong result for the period and invested for future growth while maintaining a strong balance sheet and ample funding flexibility.

I'll now hand over to Kylie to take us through the Investment Management result.

Thanks, Josh, and good morning. The first half of FY 2026 has been another strong period for the Investment Management business, delivering consistent performance while also being positioned for further growth in future periods.

The portfolio delivered comparable FFO growth of 3.7%, underpinned by solid performance across all sectors. We continue to achieve positive leasing spreads ranging from 3.3% in retail to 32% in logistics.

New development completions are supplementing our growth, and fee income from partnerships continues to build. We delivered a solid financial result for the half while absorbing net operating income dilution from the strategic transfer of assets into partnerships in FY 2025 and investing in capability and platform expansion to drive growth in future periods.

We remain actively engaged with our existing capital partners to expand their exposure across new sectors and strategies, supported by the scale and diversity of our development pipeline. The logistics portfolio was again a standout, generating comparable FFO growth of 7%, driven by positive leasing spreads of 32% on leases and renewals negotiated during the period.

The team is driving solid underlying income growth from the portfolio while also actively managing several assets that are being positioned for further development as either logistics or data centre opportunities. The WALE at 3.3 years continues to provide us with access to positive reversions, with the portfolio 12% under-rented.

Over time, we expect this WALE to increase as new developments with longer leases come online and brownfield opportunities are converted. Moving to town centres.

We've delivered comparable FFO growth of 3.2% with positive leasing spreads of 3.3%. The portfolio continues to benefit from its high weighting to essentials-based categories, while discretionary categories such as leisure, homewares, and jewellery continue to show improvement.

Comparable specialty sales are in line with benchmark averages, while occupancy costs remain at a sustainable 15.1%, and portfolio occupancy is high at 99%. In line with strategy, we delivered a new neighbourhood town centre within our Gables MPC community during the half.

The centre was delivered fully leased to Woolworths and 24 specialty stores with positive early trade performance. Turning now to our workplace portfolio, the majority of which is being prepared for repositioning, including mixed-use opportunities.

A small increase in FFO was primarily driven by the completion of the final two buildings at Stage 1 of M_Park in New South Wales. A total of 8,000 square metres of leasing was completed across the precinct, bringing overall occupancy to 74%, with 11 Khartoum Road now at 87%.

The workplace team remain focused on ensuring the highest level of operating income and adding value via development opportunities across the portfolio. A growing component within the IM platform is our communities rental income, which is comprised of our established LLC assets and an emerging portfolio of childcare and medical centres located within our masterplanned communities.

The assets deliver stable long-term earnings and an attractive development pipeline, underpinning future growth. Sector income increased by 10%, with the uplift supported by the addition of completed LLC and CRE assets during the period.

The portfolio delivered comparable FFO growth of 2.1%, reflecting the relatively small size of the comparable basket. The LLC operational portfolio now consists of more than 3,300 home sites under management, providing recurring rental and fee income, with the majority of rental increases linked to CPI.

Our significant pipeline comprising more than 7,500 home sites also provides future growth opportunities. Approximately 29% of the portfolio was independently revalued over the half, resulting in an increase of $81 million on the 30 June 2025 book value.

This reflects positive revaluation movements for both logistics and town centres, partly offset by some devaluation across assets held for repositioning in the workplace portfolio. Overall, the Investment Management business continues to deliver sustainable earnings from a diversified base of assets and new income streams, with future growth opportunities supported by a high-quality development pipeline and long-term partnerships.

Thank you. I will now hand to Andrew.

Thanks, Kylie, and good morning, everyone. The Development segment delivered a strong first half result on the back of disciplined execution of our strategy.

I'm particularly pleased by the increased activation we've driven across our MPC and LLC pipelines, a strong uplift in MPC settlement volumes, and growing demand for our LLC product. This positions the business well to continue to perform through the cycle.

Development FFO was $106 million compared to $36 million in 1H 2025, reflecting a significant lift in MPC settlements, disciplined project activation, and higher fee income from our partnerships. Our deliberate decision to upweight to the strong Queensland market, expand our platform, and accelerate activation of our pipeline are delivering results.

MPC settlements are up 60% over the half. There were no commercial development profits this half.

We expect this business to contribute to earnings in the second half with the completion of build-to-sell projects. We've also achieved strong leasing outcomes across our logistics and town centres pipeline.

In masterplanned communities, settlements were up strongly year-on-year. The development operating profit margin was 18.1%, reflecting strong price growth in Queensland and Western Australia.

Consistent with previous guidance, we expect full year margins in the low 20% range. We end the half with 5,458 contracts on hand at an average price slightly above 1H 2026 settlements, giving us good visibility for the full year.

Our focus is now on building our contracts on hand position for FY 2027. Net sales were up 87% on the prior corresponding period, reflecting higher project activation, the successful integration of the Landlease portfolio, and increased conversion.

In January 2026, we secured a further 418 net sales. This reflects the timing of releases to coincide with the launch of our summer marketing campaign from late January.

Our recently acquired Kings Forest project in northern New South Wales delivered first settlements during the half. We're seeing good demand for this product, which is selling into the heavily undersupplied Gold Coast market.

We've continued to selectively restock on capital-efficient terms, with our South Morang acquisition during the half providing us with exposure to the infill northeast Melbourne market, which continues to outperform the broader Victorian market. On to our market outlook for the year ahead.

Overall, we remain constructive on the residential market over the medium term as Australia continues to face a growing structural undersupply, with population growth supporting demand. However, market momentum is correlated to interest rates.

In New South Wales, tight supply is expected to continue to support prices despite affordability pressures. In Victoria, the recovery is forecast to gain traction, supported by normalising listings, with ongoing variability by corridor.

In Queensland, strong demand and constrained supply are expected to underpin sales volumes, with price growth to moderate due to emerging affordability constraints. In Western Australia, conditions are expected to remain robust, though lower investor sales point to a moderation in demand over time.

These fundamentals support our confidence in meeting our FY 2026 forecast. Land lease community settlement volumes for the half were broadly in line with 1H 2025.

We expect a significantly higher volume of settlements in the second half as several new communities deliver first settlements. We're also expecting a higher operating profit in 2H 2026, with first half margins reflecting the settlement mix and higher marketing costs associated with new launch communities.

Contracts on hand increased to 637, up around 60% versus June at a higher average price. Land lease sales were up 81% over the half.

We're seeing strong underlying demand, particularly in the Queensland market, and our Victorian projects are now benefiting from the completion of community infrastructure, which is driving higher conversion rates. We're actively managing release timings to maintain our delivery time frames.

We've also seen continued price growth across all markets. This has been partially offset by cost escalation in the Queensland and Western Australian markets.

Across our commercial development pipeline, we now have $1.2 billion of high-quality investment product under construction. This includes $800 million of logistics developments, which is over 90% leased, and three essentials-based town centres within our MPC communities with a combined value of $400 million.

The conversion of our commercial development pipeline into product generates attractive yields on cost, high-quality investment product for us and our partners, and increased amenity for our residents. We're continuing to grow our powered data centre pipeline, with an additional 350 megawatts secured over the half at two of our logistics properties in western Melbourne.

Overall, from a development perspective, the disciplined execution of our strategy over the half has driven strong FFO growth. We're on track to deliver a step change in residential settlements over the full year, and progress across our commercial development pipeline provides growth levers for future periods.

I'll now hand back to Tarun to conclude.

Thanks, Andrew. To conclude, our 1H 2026 result demonstrates that the disciplined execution of our strategy is driving strong operational and financial outcomes.

The macro environment, including interest rates, remains uncertain. We have a well-diversified, resilient, high-quality platform, and over the last few years, we have reweighted the business towards sectors where we have deep capability in and that benefit from long-term structural tailwinds.

We are on track to deliver a step change in settlement volumes in FY 2026 for both MPC and LLC, along with the higher production volumes across our commercial development pipeline. We expect commercial development activity, including a Sydney logistics pipeline, data centres, and mixed-use opportunities, to provide multiple drivers of returns in future periods.

While driving growth, we remain focused on risk management, capital efficiency, and sustainability. We are reaffirming our guidance for FY 2026 FFO per security of 36 to 37 cents.

Our FY 2026 distribution per security is expected to be 25.2 cents, in line with FY 2025 and within Stockland's payout ratio range of 60 to 80% of FFO. We will now open the line for questions.

Hi. Good morning, everyone.

I'm just interested in the settlement guidance range of 7.5 to 8.5 thousand lots. You've kept it the same versus where we were six months ago.

Looks like if you add up your settled lots this half and the contracts on hand, that's getting you to just below the lower end of the range. Just interested in how you're thinking about the range and what's the actual potential for you to get to the upper end.

Thanks, Lauren. We start the second half with a strong contracts on hand position on the back of that second half sales result, which obviously gives us good coverage for the rest of this year and then starting to build the bin into '27, which is positive.

The main factors with regards to where we land for the year now are really down to two elements: one, settlement rates, as we move into sort of the main June period; and then the second one is just the completion of production. Production's well progressed.

It's really getting through all of the back-ended authority approval requirements to get registrations and call for those settlements. They're the elements, but we're obviously pleased with where we are, and it sets us up well to be within our guidance range.

As we still have a material skew to the second half in terms of our lots and FFO. As the months and weeks progress from here, it will then illustrate where in the range we land, but as Andrew said, right now, we position very well.

Great, thanks. Then on how momentum's going post all the chatter about rate hikes.

Noted in the call that resi momentum is very correlated to the rate environment. Are you able to give us a little bit more colour on how inquiries or visits to your display suites have been going in the last, say, three or four weeks?

I'll get Andrew to comment just on that specific question. We have a quality, well-diversified business.

The interest rate increase was only recent. It's really very early to see any impacts, as you would have seen when rates go up and also when they were coming down last year.

It's really the second or third interest rate rise where you start to see a shift in buyer behaviour, and then the sales impact, whether positive or negative, sort of follows 6 to 9 months later. It's that sort of response you'd see.

We'll be reporting on that in due course. As I said, in terms of our own strategy in our business, as we look into '27 and beyond, clearly we have a very high-quality residential business.

Our scale is very different to before. Activation is 85%, and the land lease business performing well.

That business is strong. We've got many material drivers of growth that are now upon us, such as data centres, Sydney logistics, and our apartments pipeline.

The business is well positioned to deliver sustainable performance. This specific question on what we're seeing on the ground, Andrew?

Thanks, Lauren. On the sales office floors, yeah, we're not hearing any feedback from customers deferring the purchasing decision due to the rate increase or the outlook.

As Tarun mentioned, normally, there is a delay there, but we're not getting that feedback at the moment. In three of the four states, if we had more product to release at the moment, we would be making more sales.

You can see that in the National Land Survey data in the back of the deck. Total market sales volumes in both southeast Queensland and Western Australia have declined, and number of active projects have declined, and that is purely supply.

That's not reflective of demand. We're experiencing something very similar in our pipeline and in our portfolio.

We do manage those delivery time frames, we don't get out too far as well from sale to settlement.

Great. Thanks, guys.

Good morning, Tarun. I was just interested in your new land lease partnership, and is that effectively replacing an old capital partner that would like to be redeemed, or is that an entirely new partnership?

Tom. It it's a new partnership into the la- into the land lease sector for us.

As we've got Invesco as our partner, and this will be a new partner joining us. They're one of our existing clients, and we'll share that There's a couple of conditions precedent to go, we're just working through those.

It's pleasing one of our existing clients is looking at it. It's a different partnership.

The The one you're referring to, which is in SRRP, which is Mitsubishi, they are, they're recycling their capital. They've had a great experience over the last five years, as they've said publicly.

The portfolio's performed exceptionally well. As they're doing across many of their investments here in Australia, they're looking to recycle, and we're supporting them on that.

That may actually lead to some other investor interest, but that it's too early to say. That process has just started.

They're using an agent to run that, and we're supporting. This this new partnership is discrete, another one that we're doing in the sector, which again shows the demand for our platform and and the pipeline, the quality of pipeline we have going forward.

Great. Thanks.

Then that decision by Mitsubishi to potentially sort of exit and potential for new, are you reliant on that to generate future sell-down profits in that business, or can you generate those with the Invesco partnership? Just I noticed you didn't have any sell-down profits this period.

No, we've got this new partnership plus the Invesco one plus the SRRP will have capacity, depending on the new investor, but that portfolio is stabilised now. It started with six assets, five have already stabilised, and the last one is in another couple of years of sales to go.

That's a much more core stabilised portfolio, and that'll attract the relevant style of investor, whereas the two partnerships we have now with Invesco and this new investor are more develop-to-core style. Again, across the risk spectrum, we are populating that, but we've got enough demand coming through from our partners.

Also, we have our own requirement to access land lease earnings. As we said around 10% of employed capital would be comfortable in Phase 1 of our strategy.

We are around that, we, Stockland, also have a great need to continue to access those quality earnings. The business is in a very strong setting going forward.

Right, thanks. Just a final one.

I think in the outlook statement, you talk about an expectation for more commercial development profits going forward. Just be interested if you could elaborate on sort of the timing of that uptick and how those profits might be realised.

Is it develop to core, or is it more develop to sell type?

No, as Andrew said, yeah, it's developed to sell in our pipeline. Developed-to-sell CP pipeline, and it'll be between 14th of February and 30th of June.

Morning, Tarun and team. Thanks for the time.

Just first question, a substantial amount of those settlements in the first half, they went through the JVs. What will that volume look like in the second half, and how should we think about it from a revenue or development management fee perspective?

Thanks, Cody. For the full year, it's going to be tracking at about 25% through the JVs.

The way to think about it would be looking at the overall revenue figure and the margin in the low 20s. That's sort of the building blocks.

Got it. Then maybe just turning to buyer type.

It looks like you did really see a big jump up in first home buyer activity in Q2, which is surprising with the policy change there. What are you guys seeing from that segment of the market at the moment in terms of demand?

I know you touched on the broader picture, but just on that segment would be great.

I think you're seeing that Commonwealth government scheme driving demand for first home buyers right across the market, and recognising that when people apply for that scheme, it is upon settlement. A lot of the sales that we're making potentially aren't flowing through to that data right at the moment.

We have seen an uptick in first home buyer inquiry. Given the supply-constrained nature of three of the four markets where we trade, that is having an impact on the availability of land for first home buyers as well.

That is definitely supporting underlying demand of the broader market, and over time is a positive for getting first home buyers into home

ownership. We saw, I think we reported a 50% pickup first half to second half '25.

That recovery in demand was underway before the Commonwealth support scheme that came. As we've said, 90% of our over 90% of Stockland product is eligible for that scheme.

We've been pivoting, as we have for the last couple of years, because of affordability constraints, to provide more affordably priced products. The combination of our own lot offers plus some support is driving that demand, which is really pleasing to see, because the first home buyers getting into housing is a key plank of what we're trying to support.

Great. That's clear.

Then just the last one on cap interest. We had a big step-up there in first half.

Is that going to subside into the second half?

Yes, thanks, Cody. I think the average development NFE for first half '26 was around $700 million higher than for '25.

That's obviously a key driver of that step-up. That's before we take into account our share of the debt in development partnerships as well.

I think perhaps an additional point there is the increase in the activation of our projects also drives a greater proportion of development capital that is subject to interest capitalisation. I think as we look forward, you would expect, as settlements come through and whatnot, those numbers will adjust.

I think they're the key drivers as what's driving that capitalised interest uptick.

Thank you. Andrew, maybe a question for you.

Just in terms of the MPC settlements, it looks as though it was perhaps less of a skew than you originally guiding. I think you were kind of saying it was going to be a similar skew to last year, which had less than 30% of settlements in the first half.

Just wondering if you can call out why you might have had a better settlement level and perhaps lower skew than originally expected.

Thanks, Richard. The number is slightly less than last year, which is positive.

Look, obviously, the prior year, we had the impact of some pretty significant weather coming through in that period, which pushed settlements to the second half. The number being slightly better, both our ability to accelerate production, it is a supportive environment at the moment for getting more supply on the ground and into market.

Working with all of the regulators has been positive through this half. Then completion rates, Richard, it's good to see the completion rates.

You can see that flowing through to both the cancellations and the default rate numbers over the half as well. It's sort of a combination of those factors, which has moved us back toward the more traditional 40-60 split.

There always is a second half skew, but we want to get it more balanced.

Thank you. Then just interested in just sort of high-level thoughts, again, Andrew, just around migration demand.

Obviously, we were in lockdown through late 2020 and 2021, and migration reopened in 2022, and we saw obviously a population surge. It seems to be around that 3- to 4-year lag that drives demand.

Would you be expecting migration-led demand to be picking up across your estates?

Richard, your stats you quote there are spot-on. It is that 3- to 4-year delay that we see from new migrants entering the country traditionally rent around Sydney and Melbourne, establish that credit history, and look to purchase real estate in that sort of time frame lag.

There is a thesis that we should see that increase that we saw post-COVID flowing through to demand over the next few years, particularly in the MPC space. We are seeing good demand for that affordably priced product.

One of the benefits of our portfolio is we're able to remix our product in an agile manner. We're planning over the next 12 months how do we get more affordable product to market, how do we resequence, how do we remix to continue to lower that average price point, because that's where we're seeing the greatest demand across all segments.

That's first home buyers, downsizers, and investors.

Thank you. One more quick one.

Just in terms of the data centre opportunities, can you outline when you might expect the first project to kick off and how you're thinking about the funding structure?

We're now working, obviously, firstly, very pleased. We've got now three projects with power secured.

As power is the critical path on this strategy and in this sector. That's pleasing.

We're now working to get DAs, building approvals, that sort of, getting the sites ready, which will take a little while, and then also executing final power purchase agreements in due course. That's our focus.

The Edge partnership is in final documentation, we're talking to them about how we activate the short-term and medium-term opportunities. All that work's underway.

Timing-wise, we'll let you know in due course. Unlikely we get anything started this financial year, but as we move into '27 and beyond, we'll provide updates once we start to get those conditions precedent on power, the planning approval starting to come through, which the sites are zoned for.

We're now applying for DAs. Then clearly, customer contracts and customer interest on the critical path.

We'll share that in future periods with you, but again, as I said, pleased with securing power, which is clearly a special skill our business has given how much power activation we do right across our platform in the residential business.

Thank you. Good morning, everyone.

Just following on from Richard's last question about data centres, firstly, Tarun, can you talk to the strategy there or any updated thoughts you have on that with respect to the realisation of the upside?

Hi, Suraj. The strategy is what we said in August, I'll recap.

We are looking to allocate over the next sort of five years over the planned period, about 5 to 10% of group capital into the DC opportunity, and that'll come out of our workplace and logistics capital allocation, mainly downweighting the workplace. As we sell down our positions, which we've started to do, we'll fund majority of that 5 to 10% capital allocation.

That's the capital allocation part. In terms of our value-add strategy, it's really we're playing developer here.

We've got very well-located land across Sydney and Melbourne. As you've seen, we've added value already to that land by securing power and the planning approvals that are coming through.

From here, we'll be working with Edge depending on their requirements for the sites to get customer contracts, etc. there.

Funding-wise, you've got to think it's a 50-50 partnership with Edge, our exposure is 50%. There'll be off-balance sheet debt financed, say 50% conservatively, and then our land goes in at 100% as our equity into the partnership at fair market value.

When you put the maths together, you can see even with the power bank we've secured, we can quite easily fund it with that 5 to 10% capital allocation at the balance sheet level that I've called out. We are still lining up the ducks, but in future periods, we will start to give visibility of timing of land profits and obviously joint venture earnings as time progresses.

First focus is get the power in place.

Tarun, just on the end ownership model, any thoughts you have there? Is Stockland planning to own this on the balance sheet, or is it developed to sell down the track, or too early to determine that?

No, I think during the development phase, we'd like a substantial exposure because the returns profile is attractive. When these assets eventually reach stabilisation, as we do in all our sectors, we'll be looking to bring in the right institutional capital who want those developed-to-core-style returns or core capital, but that's how the partnership will be structured.

Initially, we want the development exposure, as I said. That's the path we're following.

I think what you're seeing is with the three power approvals we've got and the planning, and there's more in the pipe, we have a lot of optionality now in terms of adding value and extracting that value out of this great pipeline.

That makes sense. Maybe just one more on the partnership side of the business.

Obviously, you announced a new partnership today on the land lease side. Can you talk to where you're seeing most interest?

Are you seeing interest on the retail side as well for a partnership, or some other parts of the portfolio where you're looking for opportunities?

Hi, Suraj, it's Kylie here. Thanks.

We are seeing good demand from both offshore and domestic capital. As you've mentioned, retail seems to be a bit more on the wish list for those groups.

The other thing we're seeing out of the sort of Asia core funds, they've been actively sort of raising capital and have capital to deploy. A little bit more of an interest in that sort of core to core-plus-type strategy.

Living and logistics is still probably the most sought-after sectors, but definitely a bit more appetite on the retail front.

Hi, guys. Thanks very much for taking my questions.

Just a couple of them. On sales and sales momentum, I think you said 418 in January.

I think that's up, I know, a little bit really from 396 in the PCP. Maybe if you can just give colour about how that's going.

The other bit, just on margins for MPC. I think you did 22.9% last year.

You've had strong price growth. Can you just give me a little bit of your thinking around whether we should see further margin expansion relative to '25, or what the factors are that would prevent that maybe coming through?

Thanks, Callum. Looking at January sales first, there's a couple of factors to think about there.

Traditionally, January is a low sales month just because of coming out of the Christmas close-down. That January number is a lot driven on timing of releases given the short period of trading that we have there.

With our campaigns, we hold back releases to coincide with the launch of our campaign, which was in the latter part of January, combined with timing of wholesale transactions, and then just normal releases. That January number can be influenced by those factors.

We're seeing, as I mentioned, in three of the four states, if we had released more product, we would have made more sales. With regards to the margin, yeah, the mix influences those margins.

We are seeing some margin expansion in Queensland and WA on the back of the price growth within the established house market, which is rating through to price growth within land. That is being obviously offset partially by mix, and you're seeing that with the pickup in volumes in Victoria at a lower margin.

We're on track for that guidance range of the low 20s, which we'd reaffirmed.

Thanks, Andrew. Maybe one just around cash flow expectations for '26.

Can you just maybe reference I think you did $328 million for positive operating cash flow in fiscal '25. Are we expecting a lot larger number than that?

Maybe my last one would just be around the medium-term note and the terms or rate on that, please?

Sure, Callum. Firstly, on the operating cash flow, as I said, the key driver of the number for the half was the increased investment in the development NFE, which was around $400 million between June and December.

There was also some working capital movement, some other cash that was retained in partnerships for future deployment. If we think about the sort of second half, if we just calibrate around the midpoint of our settlement range for MPC and LLC, that equates to about a $1.5 billion-plus additional operating cash flow in the second half.

As an indication, yeah, we are expecting a much stronger result in the second half. Where exactly it lands will depend obviously on a number of factors, including those final settlement numbers, as well as the development spend on our own balance sheet and through partnerships.

We certainly expect a much stronger second half than first half operating cash flow, similar to what we saw in FY 2025.

Hi, Tarun and team. Look, the first question's just on the settlement guidance range, 7.5 to 8.5 thousand.

I think you said six months ago that was driven by Victoria. Your 12-month outlook is the most positive of any other state.

Can you just give some commentary on what you're seeing down in Victoria?

Sure. Thanks, Adam.

Victoria, and you can see it in the numbers quarter-on-quarter, leading into the end of the first half, we've seen improvement in that market. It's moved through the bottom from a volume perspective, and in the stronger corridors, we are seeing some moderate price growth.

In the southeast and the inner north, we're starting to see some price growth, which is good. You've seen a normalisation of those resale numbers in a lot of those corridors, but it is still variable by corridor.

The west, the recovery has been slower, resale listings are still more elevated, and you're still seeing that in the outer north as well. Overall market volumes still running below those long-term averages of up around 15 to 20,000 per annum.

We still see the potential for further momentum in that market over the next 12 months, and that's both volume and the potential for some further price increases, but we are seeing it being variable. We'd describe it still as early-stage recovery in that market.

We're well positioned with exposure to all the main corridors and ability to manage our release programmes down there to match the momentum that we see over the next 12 months.

Thanks for the colour. Just on margins, what's the spread between something like a Queensland and Western Australia versus Victoria?

We don't talk about margins for specific states. We're in that low 20 range.

To get there, you got some above, some below, obviously. That's what we're seeing.

Victoria being at the lower end, and now Queensland and WA being above the guidance range.

Great. Maybe just one more if I may.

Just on occupancy against the Investment Management segments, that's fallen across all, but you have some pretty strong comp growth. What's expected just for occupancy for the second half?

Is that going to increase, or how do we think about that?

Hi, Adam. If I look at logistics, we had slightly decreased occupancy, and that's really just based on a couple of completions that have come in and time for leasing.

We are pretty confident in being able to lease those vacancies over the period. Retail has remained really strong.

You've seen some good numbers come out of the retail portfolio, so that will remain at that 99% sort of level. Then on the workplace portfolio, that has really been the completion of the final buildings at M_Park, which have come online late December, the last one, and we're active in the market on that space.

Hi, Tarun. I was just wondering if you could comment on the process to introduce a new partner into SRRP, and I guess how confident you are that a suitable capital partner can be found from that process.

Ben, it's Mitsubishi, our client's running that process. They've got an agent.

It's a transfer of units, not the asset sales. We're assisting them on that process, but I think that's all I can say at this stage.

It's an attractive portfolio, is the other thing I can say.

Does that include the Stockland Communities partnership, which was established in the second half of 2023?

No, it doesn't.

Great, thank you. Just my second question is on MPC, perhaps Andrew.

Could you just comment on the contracts at hand in terms of average price, so far as how that compares with first half settlement revenue per lot?

Thanks, Ben. Contracts on hand sitting at just under 5,500, and that's slightly above the average price for settlements in the first half.

Hi. Good morning, Tarun and team.

A first question's just around this underlying growth. If you look at superlot revenue, that's picked up from $43 million to $121 million.

It's normally pretty high-margin stuff as well. The capitalised interest has picked up from $81 to $107 million on PCP.

If you actually sort of adjust for those two items, looks like your half-on-half growth is, yeah, on my numbers, around 5%. Just given the commentary around August last year about a step change in the business, it doesn't really feel on that underlying basis that that's coming through yet.

Am I missing something?

James, the first half is only half the story. You got to look at the full year impact of what we are doing.

We put a lot of things into production. The earnings are coming in the second half right across the platform.

FY 2026 is the step-change year, not the first half FY 2026. I think on a full year basis, we're holding our guidance.

We're holding our lot guidance. If you look at those numbers, FFO is up in the 8% range, our MPC settlements will be up 25% or so given wherever you land in the range, and our LLC settlements will be almost up 50%, and our logistics business production is doubling.

These are not insignificant numbers. They are step changes coming through, and then the earnings impact of that you will see on a full year basis.

That's what I can say. The first half, so far, we are on track, and second half, we look forward to the next four months.

Okay. Can we just get a guide for the superlot revenue for the full year from Andrew, please?

Our normal range, James, sits in the 20 to 50 range. We're going to be top end of that, maybe just above.

It depends the exact timing, cuz some of these are government contracts for things like school sites and other elements that we transact, depending on underlying demand and dealing with the counterparty delivers essential infrastructure as well. We'll be around that number.

I'm not following. On the revenue number, you did 121 in the first half.

That's on a revenue number. No, I'm talking FFO.

Okay. Yeah.

That makes sense. Just on the data centre sort of dealings with EdgeConneX.

You sort of announced that in August. I appreciate it's expanded now to a couple of other projects.

Are you looking at doing a deal across all the projects now? Is that what's kind of been the hold-up in finalising that joint venture agreement?

As

we said, James, we're in final documentation on that. We've got a big emerging pipeline.

As you say, they are the things we are more focused on when it's coming, which assets will fit which customer need. That's where all the energy is going in.

We'll put out a note when the docs are executed, but our focus is on getting these projects lined up for customer interest now in the next phase.

Oh, thanks for the follow-up. Sorry, just got cut off initially.

Just last one was with respect to superlot revenue. I think James picked that up as well.

That was up a lot versus the first half last year. What do you expect that in the second half to be, please, or some guidance around that?

I think as Andrew said, Suraj, it's the $20 to $50 million full year contribution, which is pretty typical for our business last 2, 3 years at the upper end. That's the key number to look at.

Revenue doesn't equal profit.

Thank you.

Great. Thank you for your time today and for all the questions.

We look forward to seeing you on the investor roadshow over the next few days. Thank you again.